Describe the necessary conflict between marketing managers and finance managers. Why is it necessary?

1 answer:

6 0

There is necessary conflict between marketing managers and finance managers because they are constantly fighting the battle of where to spend money. Marketing departments want to use money to heavily advertise their company/product, brand themselves within the public eye, conduct research and more whereas finance managers focus soley on the budget and finances of a business. It's important for them to have conflict or each department could be overspending or underspending where necessary if they didn't hold each other accountable.

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A company purchased equipment and signed a 6-year installment loan at 8% annual interest. The annual payments equal $9,400. The

AlekseyPX

Answer: e. $43,455

Explanation:

Annual payments are constant so this is an annuity. To calculate the present value of an annuity, multiply the annity by the present value of an annuity factor corresponding with its discount rate and number of periods.

Present value of loan = 9,400 * present value of an annuity factor, 6 years, 8%

= 9,400 * 4.6229

= $43,455.26‬

= $43,455

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Consider the optimal consumption bundle for a consumer who is choosing between two goods, x and z, which she considers perfectly

Dimas [21]

Answer: Please refer to the explanation section

Explanation:

When a consumer is choosing between two goods which are considered to be perfect substitutes , the optimal bundles choice will be the number of good x and good z that will yield maximum utility is found the ratio of Marginal utility of good x and marginal utility of good z equals the ratio of the Price of good x and the price of good z or The Marginal utility of good x per dollar must be equal to the marginal utility of good z per dollar.

Marginal Utility of good x = MUx

Marginal Utility of Good z = MUz

Utility function = U(qx,qz)

qx and qz maximises U(qx,qz) when

$\frac{MUx}{MUz}$ = $\frac{Px}{Pz}$ or $\frac{MUx}{Px} = \frac{MUz}{Pz}$